Reinterpreting excellence for sustainable competitive advantage: the role of entrepreneurial culture under information technological turbulence

Abstract

Purpose This study aims to understand the culture of excellence by examining the role of entrepreneurial culture in shaping how firms achieve sustainable competitive advantage (CA). This study takes into consideration the firms’ capability to transform the entrepreneurial culture into a sustainable CA by generating product development and adapting the information technological turbulence. Design/methodology/approach This study first gathers evidence from literature then carries out a detailed study to propose a structural equation model followed by an online survey that supports empirical evidence. This empirical test involves a data set with 782 usable responses following the 4,000 emails sent to the respondents and removed data due to the missing values. The population data are taken from the firm directory in Surabaya City that the Indonesian Ministry of Trade and Industry published. Findings There is a strong tendency that entrepreneurial culture is imperative for firms to attain sustainable CA by supporting new product development. The results show that product development provides a partial mediating effect, which indicates that entrepreneurial culture may affect the sustainable CA directly and with the product development support. This study also touches on dynamic capability by proposing a scenario approach that suggests that firms should refine the entrepreneurial culture to adapt to the information technological turbulence. Originality/value This study extends the understanding of the culture of excellence by underpinning the dynamic capability theory, which argues that entrepreneurial culture is a valuable resource, which helps firms achieve sustainable CA by promoting product development.